CACI International Inc

What they do

CACI was founded in 1962 as a simulation technology company and now operates through subsidiaries primarily in the U.S. and Europe, serving intelligence, defense, and federal civilian customers. It delivers two things: Technology, including agile software development, DevSecOps, data platforms and analytics with AI, ERP systems, electromagnetic spectrum capabilities, space-based sensors, photonics, and network modernization; and Expertise, meaning cleared technical personnel in software development, data analysis, operations support, naval architecture, engineering, and intelligence support. Demand is driven by the national security and geopolitical environment and the complexity of government network and information systems.

Revenue drivers

• Domestic C3I, Cyber, Digital Solutions, Enterprise IT, Mission and Engineering Support — CACI's domestic operations are organized into these market areas spanning multi-domain command, control, communications and intelligence, full-spectrum cyber, agile application modernization, enterprise IT for roughly 50 federal agencies, and engineering, training and simulation services.
• Department of War (DoW) contracts — Contracts with agencies of the Department of War accounted for 53.6% of total revenues in fiscal 2026, making it the single largest customer concentration.
• Intelligence Community (IC) contracts — Contracts with the Intelligence Community accounted for 24.6% of total revenues in fiscal 2026, down from 25.6% in fiscal 2025.
• Federal government contracts overall — Federal government contracts, as prime or subcontractor, accounted for 95.6% of total revenues in fiscal 2026, with foreign governments and commercial enterprises making up the remainder.

Recent performance

Fiscal 2026 revenue was $9.57 billion, up 10.9% year over year, with net income of $535.8 million and diluted EPS of $24.16, up 8.2%. Adjusted diluted EPS was $29.83, up 12.7%, on adjusted net income of $661.6 million, and EBITDA was $1,173.9 million at a 12.3% margin. Fourth-quarter revenue rose 17.6% year over year to $2,709.1 million, including 11.6% organic growth, while fourth-quarter net income was $156.8 million and diluted EPS $7.05, down 1.3% on higher interest expense from the ARKA acquisition and a higher tax provision. Annual operating cash flow was $886.7 million, and the company reported free cash flow growth of 66% for the year. Fiscal 2026 contract awards totaled $10.2 billion, a book-to-bill of 1.1x.

Strategy

CACI describes itself as a technology-first national security company and invests ahead of customer need through R&D to build differentiated technology for critical national security missions. It aims to win new customers, repeat business, and long-term relationships through a market-focused business development organization, and in fiscal 2026 it won $10 billion in contract awards while growing both funded and total backlog. Management cited continued investment across the business and added executive talent as positioning for fiscal 2027, and said the fiscal 2027 guidance puts the company on track to meet or exceed its three-year financial targets. The company completed an acquisition (ARKA) during fiscal 2026 and deployed its SkyValor counter-drone system to the Southern Border after a Joint Interagency Task Force 401 operational evaluation.

Risks

• Federal customer concentration — Federal government contracts, as prime or subcontractor, were 95.6% of fiscal 2026 revenue, so any suspension, debarment, or significant reduction in federal business would materially and adversely affect results.
• DoW and IC concentration — Revenues from Department of War agencies were 53.6% and from the Intelligence Community 24.6% of fiscal 2026 total revenues, concentrating exposure in a small number of agencies.
• Budget and continuing resolution risk — When appropriations bills are not passed, agencies operate under continuing resolutions that can delay new program starts and contract award decisions, which CACI notes can negatively impact its business.
• Debt and interest expense from acquisition — Long-term debt was $4.85 billion at June 30, 2026 against $191.8 million of cash, and higher interest expense as a result of the ARKA acquisition contributed to a slight decline in fourth-quarter diluted EPS.

Outlook

Management issued fiscal 2027 guidance and expects strong cash flow, driven by strong revenue growth, margin expansion, and efficient working capital management. The company says it is on track to meet or exceed its three-year financial targets and cited fiscal 2026 investments and added executive talent as positioning it for continued success in fiscal 2027 and beyond. CACI also characterizes the federal budget environment as constructive with bipartisan support for defense and national security spending, while noting uncertainty over the timing of appropriations bills.